fees over the year

[crumpet54]

Quick question while it's nap time!
My first mindee parent was saying she would like to pay by standing order
But obviously some months there will be more weeks then others so -
- shall u add up total for the year then divide by 12 ? But then what happens if I am off on holiday or I'll (I don't charge if I'm off ) do u just refund as and when?

[kellib]

I do this for a few of my parents, I add up the cost for the year then divide by 12 and that's what they pay each month.

If there's any extra hours they just pay me the extra money then and if I have to close for whatever reason I issue a refund.

I've found it a pretty easy way to work

[BallyH]

I do mine termly as this gives me greater control over holidays. So my bills go out Jan, May, Sept.
This also works well for families that received funding.
I calculate the number of sessions the child will attend that term, then divide it by 4. Parents pay 4 equal amounts, then another set of 4 equal amounts the following term etc.
I also don't charge for my holidays.

[JCrakers]

I do this for a couple of parents. The full time children are easy to do over the year but its the term time only children that take a lot longer to work out as sometimes there's more that 38weeks in a school term.

I work 47weeks out of the 52 so I just take that off before I divide

If I'm ill then I would just refund as and when

[nikki thomson]

Hi, this can work well but do bear in mind if they leave your setting mid yr you could end up owing them money. My friend did this with a mindee, she did like 56hrs a week during the holidays then before and after school during term time, anyway the mindee left in the August as they moved house and my friend owed them quite abit of money I think it was about £700 and she ended up effectively not being payed for 4 weeks in the summer holidays bar about £100, that she had mindee for 56hrs a week as they'd over payed her and this was her last mth with them if that makes sense, my friend really begrudge the long hrs and effectively it was like not being payed, she said she wouldn't do it again, as it all got abit complicated to work out what had been payed etc, and the parents got abit funny with her. X

[k1rstie]

Far too complicated for me!!! I have always charged in arrears, ( as I don't like being paid for what I have not worked!). They are involved at the end of the month fir the previous month plus any extra days/ hours etc. There are then no surprises. My parents have never had a problem with this.

I must add that all my children are part time, and I have never had a problem with payments.

[tess1981]

I'm paid in arrears weekly so much easier for me lol no working out for us

[Simona]

Charging in arrears does have a lot of benefits because you can detail exactly the hours contracted for any child and any extra bits and itemise the funded hours.

One disadvantage is that cms have to buy food in advance...pay for Stay and Play and other expenses for which they will not get paid for 4 weeks.

For many cms it will be ok but for others it may be a large sum to invest in advance....especially those already paid in arrears by their LA!

Dividing the cost every month in equal payments is helpful too but be aware that parents do chop and change childcare at very short notice and you may have to refund money...think also of EYPP if you get that funding

Whatever you choose to do put your 'thinking financial' hat on before deciding what is best for your small business!

[crumpet54]

Plenty to think about thank all for your views and advice x